The Tasks of Marketing in the Digital Era

International Journal of Trend in Scientific Research and Development (IJTSRD)

Volume 5 Issue 4, May-June 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

@ IJTSRD | Unique Paper ID – IJTSRD41164 | Volume – 5 | Issue – 4 | May-June 2021 Page 129

The Tasks of Marketing in the Digital Era

Asqar Samadov

Associate Professor, Tashkent State University of Economics, Tashkent, Uzbekistan

ABSTRACT

This article has a qualitative approach, where the main challenges that

Marketing areas have in the era of disruptive technologies are raised. At the

same time, it examines the opportunities offered by the same technologies to

deal with the capture, management and treatment of large volumes of

information dispersed in different sources, whose heterogeneous,

unstructured data concentrates the basic elements to develop invaluable

information to the departments Marketing, given that there would be obtained

market trends, attributes and ideal characteristics to develop products and

services tailored to consumers.

KEYWORDS: Big Data, KPI, ROMI, Marketing, disruptive technologies

How to cite this paper: Asqar Samadov

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1. INTRODUCTION

In 2020 a study reported that 85% of the data in the world

was generated in the last two years. This enormous growth

of information, consolidated by the growth of social

networks, the Internet of things, geolocation, increased

broadband, smartphones, gives way to Big Data technology.

Based on the foregoing, it can be indicated that the Digital

Era impacts Marketing areas, forcing them to rethink

strategies, functions and operations within a company and,

on the other hand, companies, so that they take advantage of

the available technological tools, of In such a way that by

analyzing the information provided by customers, they allow

them to make correct decisions, in the identification of new

businesses or development of products and services, whose

characteristics are attached to the needs, trends and tastes of

consumers.

This document seeks to generate understanding of the

difficulties and challenges faced by companies and

marketing areas, when processing large volumes of

information and at the same time to know the advantages

offered by existing technologies such as Big Data, to identify

tastes, preferences of clients, new business opportunities

and consumer trends, in such a way that they allow the

creation of products or services according to the factors and

attributes identified, so that they add value to companies and

clients. In summary, it is intended to analyze the difficulties

and challenges of current Marketing and the opportunities

offered by technologies to face the existing challenges in the

Digital Age.

To achieve the objective of this study, internationally

recognized bibliographic sources were taken, the main

authors of Marketing such as Philip Kotler, Gary Armstrong,

Juan Carlos Alcaide. Likewise, articles published in academic

journals related to technology and the challenges of

Marketing today were reviewed. A total of 23 bibliographic

references published from 2011 to the present were used.

The literature review is based mainly on academic

publications with theoretical approaches carried out in the

last four years, since this document is intended to clarify

concepts and encourage future research that is related to the

technological impacts in the Marketing area, analyzing the

importance, attributes and characteristics of emerging

economies and disruptive technologies.

In the first part, Marketing concepts, their evolution and

approaches based on the market environment over time will

be addressed. Second, disruptive technologies and the type

of data generated will be listed, as well as Big Data,

characteristics, benefits as a technological alternative that

provides solutions to the high volume of heterogeneous

information.

2. MARKETING CONCEPTS METHODS

In this first part, Marketing concepts will be compared to

extract and decompose general terms that allow

dimensioning the scope of its functions in the Digital Age.

In the first place, the main association of the discipline is

cited, the American Marketing Association (AMA), the same

one that was adapting the concept of marketing based on the

economic, social, innovation and technology changes that

were arising over time. and that affected management

techniques and marketing influences. In 2013, the AMA, after

several investigations, released the latest definition of

marketing to date, “marketing as the activity, a set of

relevant practices and processes to create, communicate,

release and exchange offers that have value for customers.

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clients, partners and for society in general. For their part,

Kotler and Armstrong (2014) agreed when saying that

"Marketing is the process by which companies create value

for customers and build solid relationships with customers

in order to capture customer value in return".

In both definitions it is specified that marketing manages

processes to create value for different interest groups, which

is why the marketing function grows as a discipline outside

the organizations, delivering value not only to the parties

involved in the exchange but also to the society, however, it

is identified that in the definition of Kotler and Armstrong

they highlight the term creating solid relationships with

clients.

Based on the above, the marketing challenges are identified,

understanding the market, which according to what Ferrell

and Hartline (2012) mentioned in their most basic

description, the market is a set of buyers and sellers,

implying that the market is a group of individuals or

institutions with similar characteristics and needs that can

be served with a particular product or service,

understanding that as the “what”. However, the “where” is

what has changed with today's technology. At the moment,

where can be "anywhere", buyers and sellers are located

anywhere, with different cultures, thoughts, emotions and

needs.

Design the marketing strategy Immediately another

challenge jumps, how to design the client's marketing

strategy, if the market no longer has a physical location,

referring to the presence of a virtual market, where

products, services and information are exchanged through

existing technological networks, which grow quickly

detached from time and space.Several examples of this type

of market are companies such as Amazon, eBay and Monster,

where customers can buy, place orders, exchange

information 24 hours a day, seven days a week and lose

control over the information that is said about their

company and products through blog, Twitter or discussion

forums of a virtual market outside the space of the same

market.

Marketing plan and program The company must first

create an offer that meets the needs of customers, this is

called a product; deciding how much to charge for the offer

is the price; and how you will make it available to target

consumers; square. Finally, the marketing program

establishes relationships with customers by transforming

the marketing strategy into actions, which, depending on the

way of connecting with customers, gives way to digital

marketing, which should be integrated into the strategic

marketing of the company. The following figure illustrates

the digitization of marketing and the relationship between

the product and service offering and how it will access the

customer.

Disruptive Technologies Disruptive Technologies offer

revolutionary changes in the realization of processes and

operations, they create growth in the industries in which

they penetrate and from them completely new industries can

be created through the introduction of products and services

that are convenient for quality and price. These technologies

typically disrupt workforce participation by allowing

technologically unsophisticated individuals to enter and

become a highly competitive, industrial workforce.

Since the beginning of time, each new technological

invention has meant a paradigm shift for the way people

function in their work. However, the frequency of changes in

recent years has increased to such an extent that companies

have to renew almost every season. Usually they are small

changes or mere adaptations, but sometimes an innovation

appears that renders the previous mechanisms obsolete.

This is what is known as disruptive technology.

In this section, the disruptive technologies that have

generated significant impacts on the world will be listed to

directly locate the impact on the generation of information

required for marketing studies in the preparation of

strategies, plans and programs that generate value. to the

client and identification of new markets. According to Barba

(2014), few technologies shape and reshape the economic

landscape. For such technologies to rise to the category of

economically disruptive, they would have to radically

transform the status quo, transforming the way of working

and living.

Some technologies that have been agreed to have disruptive

economic impacts will be listed below.

� 3D printing, will allow the creation of large-scale

products.

� Robots, one of the most powerful disruptive

technologies, currently perform operations that were

thought to be impossible to automate.

� Internet of things, refers to identifiable objects, if all

objects were identified legibly it would be a drastic

change for the human population.

� Cloud computing, is one of the most powerful disruptive

technologies, it allows the use of a variety of tools to

manage content or measure KPIs from any device with

Internet access.

� Farmer drones, these are easy-to-use unmanned

aircraft, equipped with cameras and that also allow

water samples to be taken, to monitor the harvest, water

consumption and pest management.

3. BIG DATA

Definition At present, different authors have not reached a

consensus on a generally accepted definition of Big Data. The

authors examined define Big Data from different

perspectives, all of them complementary. In this section

there will be a synthesis of the concepts examined through

different citations. For McKinsey Global Institute (2011),

“Big Data refers to data sets whose size is beyond the

capabilities of typical database software tools to capture,

store, manage and analyze” (p. 1). According to Schmarzo

(2014) “Big Data seems different, perhaps because its nature

is more related to business transformation than to

technology” (p. 19). On the other hand, for Solana and Roca

(2015), “Big Data is decision-making or the provision of

services based on the use of digital data flows and the ability

to process them in real time” (p. 11).

Considering the detailed review of different authors in

several consulted publications, a definition in accordance

with the Digital Age will be taken as a reference. Considering

the concept of disruptive technologies, in this case the

contribution of Ortiz, Joyanes and Giraldo (2016) will be

considered:

Big Data is the organizational, technological and tactical

strategy that facilitates capturing, storing, processing and

analyzing the large volumes of data generated throughout

the company's value chain, which varies according to the

sector, industry and the needs of each company (p. 8).



Picture-1 Big data value definition

Companies in general need to store all the data, which represents large volumes of information, which will be gradually

incorporated into their operational procedures, therefore it must be available at any time. Others require the information

processed in real time, for immediate decision-making, that is, they demand speed and thus offer their customers products at

the moment, according to the interests presented, to motivate the purchase in real time. Likewise, other organizations demand

variety, which is why they store different types of data, to manipulate them in their business structure. In summary, it could be

indicated that the policies and business rules for the use of Big Data are perfectly linked to the mission, vision, purposes and

business objectives of each institution or organization.

Data types and sources of Big Data Big Data is different from traditional data sources that store structured data in relational

databases, which would be the traditional schema.

However, the great variety of data generated by companies, people, machines, transactions, biometrics and the different types

of technologies, it could be said that the most abundant and those with the most informative content for organizations, are the

types of data unstructured. Due to the huge amount of data provided from various sources.

The main challenge: the 6Vs of Big Data With the permanent growth of the volume of data, companies in general face great

challenges every day to manage and administer the information generated from the different technological platforms. In

particular, IBM and Gartner propose the model of the three “Vs” to refer to the characteristics of Big Data: volume, speed and

variety. However, as technology advances and the volumes of information grow enormously, new features are added, this is

how IBM includes a fourth feature that is truthfulness, but Joyanes (2014) adds the fifth and it is about value .

On the other hand, another author, Tascón, proposes an additional V, it is about visualization, which represents the new ways of

seeing these data (Tascón, 2013). Therefore, it is concluded that the current Big Data has 6 "V", to cover the organizational

needs: volume, speed, variety, veracity, value and visualization, this is how this phenomenon that is information drives

innovation in companies, the technical elements and processes that lead to the immediate knowledge of your clients or client

prospects. These tasks involve many actions: capturing, storing, processing, and analyzing information as 6V attributes.

Of the great variety of data generated by companies, people, machines, transactions and biometrics among other sources, the

most abundant and those with the most informative content for organizations are the types of "unstructured" data, commonly

also called heterogeneous data. . From the huge amount of data provided by various sources, the web and social media will be

taken as a reference in this writing.

The creation of value in companies through Big Data Big Data can generate profits for companies and the efficient creation

of new products. Thanks to data processing, information can be generated that improves decision-making. That information,

plus the experience of obtaining new knowledge, can be used to innovate, create, improve existing processes and reduce costs.

It could also discover components, products, variables that generate a deeper knowledge of how companies behave internally,

their environment, influences, interaction with stakeholders, how they behave in relation to products, identify expectations,

and suggestions on how to behave. I could satisfy them better. Big Data can trigger the transformation of the company, its

products and even the market, since it could position companies in a privileged way.

With the knowledge and treatment of data, plus the combination of sources, together with creative and innovation processes,

companies could be transformed, through the search for relevant information. You can also explore the possible relationships

and combinations with data from social networks, which have details about opinions, tastes, preferences, customer needs,

feelings that a brand awakens with the stock market price (Galimary, 2014).

Below are a series of success stories and benefits regarding the implementation and application of Big Data in business

management, especially in Marketing.



Recommendation engines Amazon began using Big Data-based book recommendations, replaced a team of critical publishers,

and the success was resounding and patented. Similarly, Google with recommended ads, Twitter with suggestions, Facebook

with friends, LinkedIn with suggested contacts. Those suggestions are based on analysis of users, their behavior, to generate an

idea of how to satisfy them.

Marketing campaign analysis This section responds to the section “Marketing challenges” (See above). The marketing

process: create and capture customer value, given that the more atomized the data is, the more accurate the marketing

departments would be to identify and segment target customers and personalize content. The provision of data such as flows

on the webs, clicks, Facebook preferences, detailed call encodings, and the metadata of tweets, in short, will allow the

identification of new shopping patterns and customer behaviors.

Customer loyalty Loyalty to your customers is not a matter of luck (Alcaide, 2015), the repurchase of products by the same

customer may indicate a higher degree of loyalty and less probability of losing the customer, that is why many companies strive

to improve the cross-selling and up-selling, however, the heterogeneity of criteria is a problem when analyzing sales between

different lines of business. Big Data is capable of treating this data in a unified way, allowing large-scale analysis and identifying

patterns correlated with the loss of customers or greater loyalty, in this way the efforts and initiatives are fully targeted.

Social Analysis Facebook data scientists discovered that, if a friend shared a photo and added a "like", that caused other

friends to be encouraged to act in the same way, this led to Facebook modifying the news page giving greater visibility of the

actions carried out by friends, generating a circle of new contributions. In summary, this type of behavior patterns captured by

the behavior associated with Big Data would be difficult to find by other means.

Predictive analytics The immense volume of data that financial institutions must process to predict future changes in the

markets, using current and historical data, make the analyzes can be solved using Big Data technology. Big Data allows analysis

in a simpler, faster way, even in real time, with relatively low costs.

Risk analysis In an increasingly globalized environment, proactive and continuous management to analyze and evaluate

business risks are keys to success. However, the heterogeneities of the actors involved in these processes make it difficult to

carry out the analyzes. An example of the expansion of a company with Big Data Scoring which is a determining tool to measure

credit risk in banking entities and which allows evaluating the solvency of a client based on data from social networks, the time

they spend consulting Facebook, the university degree of the network of friends, the "likes" or the indicated preferences. They

also mention news that crosses with other companies looking for alerts about inconsistent data. In his profile of the social

network LinkedIn indicates that he is a Harvard graduate, no friend in his network has studied at Harvard, it may be possible,

but it is unlikely.

4. ROMI MEASUREMENT

Definition ROMI is the return on investment in social media. Its objective is to identify all the annual contributions that the

business has obtained from social media marketing, both in sales, increase in market share, among other data (Awareness Inc.,

2012). Another expert indicates that "the Social Media ROI is the profitability obtained from the activities carried out in social

networks and media" (Serrano, 2012, p. 5).

Picture-2 Measuring return on Marketing investment

The 4Rs of Social Media To measure ROMI it is necessary to

take into account the 4 “Rs” of social media. The first "R" for

recognition: they are the data and values most recognized by

all, these can be fans, followers, subscribers, that allow

recognizing at a glance the situation of a brand in a social

environment. The second "R" of revaluation: after having a

recognized community, the company or brand must try to

revalue it constantly. The third, reaction: the previous ones

are fundamental, but they are useless if a concrete action is

not achieved by the Internet user. Faced with a marketing

stimulus, there must be a reaction on the part of the user to

achieve the proposed objectives.

The fourth of recognition: if the campaign has made the user

react, only the step that shows greater involvement, loyalty



and recommendation remains, share, mention, retweet,

among other things that are signs that the user is not only a

fan of the brand, but hopes that others will find out and also

become fans or followers.

How to measure ROMI To measure the ROMI, the costs and

expenses of the personnel, activities, actions and resources

required to carry out the campaign in social media and other

expenses incurred are added. On the other hand, the results

obtained derived from activities in social media that have a

direct impact on business results are calculated, it can be the

percentage of total sales, net profit of the percentage of sales

made through social networks or favored by campaigns in

these (Awareness Inc., 2012).

Measuring ROMI is as important as identifying net costs,

revenues, and benefits. However, what is really important is

to determine which social media marketing campaigns are

appropriate for each organization, in this case the

environment, types of customers, variables and important

and transcendental attributes for the business and the value

chain are required. The metrics applied to ROMI allow

evaluating social media and must have a meaning or context.

There are four types of metrics

� Fundamental metrics: these should include:

engagement, engagement, influence, advocates, and

impact.

� Business value metrics: encompass corporate goals such

as revenue, market shares, and consumer satisfaction.

� Result metrics KPIs: they are the key performance

indicators, they are carried out taking into account the

objectives for which you are working and these may

vary according to business needs or objectives.

� Counting metrics: they are the lowest level ofanalysis:

administrators, followers, visits, views, click numbers,

this data reveals information tactical details of the

social-media campaign.

5. CONCLUSIONS

Disruptive technologies generate disruptive economies,

which forces the world to rethink its activities in general, the

Marketing area is not alien to this reality since they have to

analyze the difficulties and challenges of changing Marketing

and identify technological solutions that allow them to

maintain the vision on new markets, adding value and

innovating to products or services, developed to measure

and based on the expectations of customers, increasingly

demanding and changing. Big Data in the digital age is the

tool to face existing challenges, it is the solution to the mega

explosion of information, dispersed, unstructured and

heterogeneous, since it has the ability to extract the

abundant information that exists in social networks , and

other sources of information, whose treatment forges

valuable information for the marketing areas in the different

companies, because through that information they are able

to identify essential factors for the new studies, analysis and

execution of the marketing processes in the different

commercial schemes and whose return on investment

generates positive KPIs and ROMI for shareholders and

stakeholders in general.

Technological developments will continue over time, so it is

necessary to continue with studies of disruptive trends in

different areas, to take advantage of little perceptible but

existing opportunities and in turn as a precautionary

measure that through new studies avoid negative business

and social impacts as they may not have opted for

innovation.

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Education

The Tasks of Marketing in the Digital Era